...Raleigh, USA Email: sreiter@binghamton.edu Received October 31, 2012; revised December 1, 2012; accepted December 12, 2012 ABSTRACT The US accounting profession was caught up in, and some say responsible for, the whirlwind of accounting and business scandals that rocked the US markets in 2002. To restore investor confidence in financial information, the Sarbanes-Oxley Act created a new Public Company Accounting Oversight Board with the authority to set standards for auditors of publicly traded companies, thus ending a century of professional regulation of auditing. In this analysis we employ sociological theories of professionalism [1-4] to help understand the implications of the Sarbanes-Oxley legislation for the accounting profession and for the public interest. We explain why professional self-regulation is important for retaining valuable economic franchises. We also explain why the public interest orientation of the profession is important and how government take-over of auditing standards potentially erodes the public accounting profession’s commitment to the public interest. Self-control over professional work, a key characteristic of professional status, is pre-empted by the newly created government oversight body PCAOB. With government takeover of oversight of auditing practice, claims to professional status are weakened and professional commitment to and involvement with vital work standards may suffer. In addition, the profession may no longer have incentives to...
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...Ethical risks and threats in the accounting profession Accounting ethics is primarily the study of moral values and judgments as they apply to accountancy. Accounting ethics were first introduced by Luca Pacioli in 1494 in his book “Summa de arithmetica, geometria, proportioni, et proportinalita”, and later expanded by government bodies, professional organizations and independent companies (Humphrey 2005). Throughout 2001 and 2002, the financial scandals in in the USA and some other countries, such as Australia, dramatically demonstrated how the efficiency of financial markets is based on assumptions of trust and ethical behavior of corporate managers (McPhail 2001). The collapse of companies such as Enron, WorldCom and Global Crossing in the USA, HIH Insurance and OneTel in Australia, and Parmalat in Italy, has led to a loss of confidence by the investing public in the system of financial reporting and accountability. The globalization and diversification of accounting services, combined with market competition and high profile corporate collapses has drawn attention to the accounting profession and its perceived ethical standards. (Cooper 2007) Ethical values provide the foundation on which a civilized society exists. Without the foundation, civilization collapses. On a personal level, the answer to the question of the highest aspiration might be wealth, fame, knowledge, popularity, or integrity. But if integrity is secondary to any of the alternatives, it will be sacrificed...
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...Introduction 2. China Food Scandal 3. Analysis of China’s case 3.1 3.2 3.3 3.4 Conflict: Business vs. Business Conflict: Business vs. Government Conflict: Society vs. Government Implementations and Critique 4. Taiwan Food Scandal 5. Analysis of Taiwan’s case 5.1 5.2 5.3 5.4 Business Government Consumers Implementations and Critique 6. Alternative Solutions 6.1 6.2 6.3 6.4 Changing the business culture by incentivizing ethical practices 2-Prong approach Improve information symmetry Develop a systematic approach for food scandals 7. Conclusion 8. Appendix 9. References 1. Introduction In recent years, the world has seen many cases of food safety issues, especially in Asia and the effects are global. Our group has chosen China and Taiwan as our two main countries for analysis: China is one of the world’s largest exporters of food products and food safety issue is pertinent; Taiwan’s food products are exported to 15 major countries such as U.S., China, Germany, Hong Kong, and Malaysia (Wang, 2011), thus food safety issue is serious as well. If these hazardous products were circulated to different countries, the consequences would be widespread. This report provides the background information, analysis of the problem and solutions in the respective countries. In addition, our group will identify the root cause of the problem, generate alternative solutions and decide the best-fit solution. 2. China Food Scandal The China melamine milk scandal was uncovered in 2008...
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...Elisabeth of Bohemia from 1643 to 1649 give incredible insight not only into the person of René Descartes but the intricacies of his philosophical views, particularly as a critical review of his substance dualism. The core tenants of Cartesian dualism are (in brief) that; 1) There exists only two distinct types of substance; material substances (of the body and the physical realm – that is extended spatially) and immaterial substances (that make up the mind, rationality and the soul.) 2) In relation to the body – Descartes is a mechanist; such that the body operates like a machine, according to internal laws, reactivity to external stimuli. The soul or mind is capable of diverting these automated principles; such that we see the distinction between human reason and action, and the behaviour of animals....
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...Clayton Act, and The Robinson-Patman Act) 111. The Foreign Corrupt Practices Act (FCPA) of 1977 makes it illegal for an American businessperson to give anything of value to any foreign official in order to influence an official decision. A. Applicability of the Act B. Prohibitions under the Act C. Penalties for Violations of the Act 1. Criminal 2. Civil 3. others D. Defense under FCPA 1. Lawful payment 2. Bona fide expenditures E. Fraud/Scandal of the FCPA of 1977 1. Detection method 2. Importance of Early Detection 3. Big problems for small corporations/organizations 4. Types of fraud and who is involved 1V. Sarbanes Oxley Act A. The effects of Sarbanes-Oxley Act on corporate culture (1) Increase in accounting costs (2) Increased records-management requirements (3) Salary increases (4) Increase in audit fees B. Need for Continuous Auditing/ Continuous Monitoring and its benefits C. Role of internal Auditing and Management. D. Identification of Control Deficiencies – What is the Act doing to minimize. E. Fraud/Scandal, Waste,...
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...Introduction The strategic plan developed by organisations must be responsive to the business environment and to the strengths and weaknesses of the organisation. In this paper two techniques that are often used for environmental scanning are applied on Tesco PLC. These techniques consist of the PESTEL analysis and the SWOT analysis. Environmental Scanning in the Strategic Planning Process Hunger and Wheelen (2002) divide the strategic planning process into four key stages, which comprise the following: scanning of the external and internal environment, development of strategies, implementation of strategies, and evaluation of actual results in line to the strategic targets set. The scanning of the external and internal environment is important in order to identify key factors that help in the development of sound strategies (Hunger and Wheelen, 2002, p. 12). For example, an examination of the business environment can help in the identification of opportunities and threats that affect the organisation. PESTEL Analysis Political The UK government has recently adopted a tax measure that affected Tesco. In 2011 the UK government increased the VAT rate from 17.5% to 20% with the aim to increase government revenue by £13 billion per year (BBC, 2011, n. p.). Crossley et al. (2009, p. 3) contend that an increase in the VAT rate leads to lower customer spending. Therefore, an increase in the VAT rate negatively affected the sales revenue generated by Tesco. Sales revenue is...
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...According to Gray, Owen and Adams (1996) financial management is the core business discipline which is meant to ensure that financial resources are deployed in the most effective manner, within the best interest of every group of stakeholder. Moreover, the importance the financial management also increases in current business context because of the fact that economic and financial contexts have become uncertain and unpredictable in every region across the world. At the other end, financial management also supports the business activities and operations which include investment decision making, pricing, financial reporting as well as to meet the legal and regulatory obligations. This report also focuses on the different aspects of financial analysis and management to reflect its validity, reliability and usability in practice. The purpose of this report is to understand and examine the different aspects of financial management, which will be helpful to understand the effectiveness of financial management and its different aspects. In order to achieve the report’s objectives, below paper is divided into three parts. First part of the report will discuss and examine the extent to which accounting practices and policies are effective to serve the stakeholders’ expectations. Second section of the report will examine the significance of investment appraisal technique i.e. discounted cash flow, along with the justifications and example. In the last part, the report will focus on...
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...Accounting ethics is primarily a field of applied ethics and is part ofbusiness ethics and human ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics. Accounting introduced by Luca Pacioli, and later expanded by government groups, professional organizations, and independent companies. Ethics are taught in accounting courses at higher education institutions as well as by companies training accountants and auditors. Due to the diverse range of accounting services and recent corporate collapses, attention has been drawn to ethical standards accepted within the accounting profession.[2] These collapses have resulted in a widespread disregard for the reputation of the accounting profession.[3] To combat the criticism and prevent fraudulent accounting, various accounting organizations and governments have developed regulations and remedies for improved ethics among the accounting profession. ------------------------------------------------- Importance of ethics The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment.[4] They rely on the opinion of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair...
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...REPORT RE: RECENT ACCOUNTING AND CORPORATE GOVERNANCE SCANDALS Contents INTRODUCTION: 3 CORPORATE GOVERNANCE 5 CORPORATE GOVERNANCE IN IRELAND 5 RESPONSE FROM REGULATORS TO THE MOST RECENT SCANDALS IN BANKING SECTOR 7 US CORPORATE GOVERNANCE at a time of Tyco scandal 8 RESPONSE FROM THE REGULATORS -SARBANES-OXLEY ACT 2002 9 AUDIT 10 EXTERNAL AUDIT 10 INTERNAL AUDIT 11 INTRODUCTION TO ANGLO IRISH BANK 12 The Scandals 12 Loans to Sean Fitzpatrick 13 Irish Life and Permanent Depositing Funds 14 Corporate Governance Situation of Anglo 16 Ernst & Young – External Auditor 17 Impact on Shareholders & The Public 18 Company Law, Financial Regulator, Accounting Standards IFRS and GAAP 19 TYCO INTERNATIONAL 20 DETAILS OF TYCO’S SCANDAL 21 ACCOUNTING ISSUES IDENTIFIED 22 THE CORPORATE GOVERNANCE WEAKNESSES AT TYCO 22 PERFORMANCE OF EXTERNAL AUDITORS 23 CONCLUSION 27 The Main Reasons for The Scandals 27 Steps taken afterwards-will they prevent similar events happening in the future? 33 END REFLECTION 36 Bibliography: 37 Appendices: 41 INTRODUCTION: Accounting and corporate governance scandals have been a growing problem in the recent years. Many believe that the blame for those scandals should be borne on two groups of people. Those responsible for managing a company and those whose duty is to provide assurance on the accounts prepared by the directors (auditors), both of whom failed to perform their jobs adequately...
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...Highs and Lows of Nike Advertisement Abstract This paper is designed to compare two images based on their style, audience and purpose. Both images are similar, but only one is useful in my opinion. The purpose is to practice critical thinking, while comparatively analyzing these two images for their effectiveness on their target audience. This piece will also draw the message and appeal to the audience from the images that were chosen. The results should depict a useful image for a select audience, and an image that doesn’t do quite do what the other can. Introduction It is safe to assume that vast majorities of people have owned an item with a white “swoosh” on it, right? That swoosh is a universal and I’m confident to say a vast majority of the world recognizes what brand it boasts: Nike. The athletic manufacturing giant that is Nike is a universally recognized brand that is familiar with athletes around the world. Rated at 126 in the Fortune 500, Nike is a global powerhouse, and much of its success is based on successful advertisement with highly paid, endorsed athletes. With their well-known sales pitch “Just Do It,” most people, including myself, do just that. This essay will convey 2 examples of Nike: good advertising, and the bad, their target audience, and what both images do to compel you to purchase the products they bolster. Description The two images chosen to describe are both similar in terms of Nikes taste is athletes and message, and vastly different...
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...Final Paper I have selected the non-fiction book named ‘The Smartest Guys in the Room’ written by Bethany McLean and Peter Elkind. The book is based on the The Amazing rise and Scandalous fall of the Enron Corporation. Enron Corporation was an American energy, commodities and service company based in Houston, Texas. Before its bankruptcy in December 2, 2001, Enron employed more than 20,000 employees and was one of world’s major electricity, natural gas, communications and pulp and paper company with claimed revenues of nearly $111 Billion during the year 2000. In 1985 Kenneth Lay (the founder of Enron Corporation) merged the natural gas pipeline companies of Houston Natural gas and Internorth to form Enron. Enron was named by the Fortune magazine as ‘America’s Most Innovative Company’ for six consecutive years. Enron became the largest seller of natural gas in North America by 1992, its trading of gas contracts earned $122 Million (before interest and taxes) the second largest contributor to the company’s net income. The company’s founder Kenneth Lay helped to initiate the selling of electricity at market prices, and soon after the United States Congress approved legislation deregulating the sale of natural gas. The resulting markets made it possible for traders such as Enron to sell energy at higher prices, which significantly increased its revenue. In an attempt to achieve further growth, Enron pursued a diversification strategy. The company owned and operated a variety of...
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...Organizational Behavior in the Case of the Penn State Sex Abuse Scandal Kelley Griffin OL-500 Human Behavior in Organization Southern New Hampshire University Lisa Wright March 23, 2013 Organizational Behavior in the Case of the Penn State Sex Abuse Scandal In 2012, “former Penn State defensive coordinator Gerald “Jerry" Sandusky was found guilty of sexual abuse. . . . He was accused of sexually abusing 10 boys over a 15-year period in a scandal that has rocked the university's community” (Chappell, 2012, para. 1). When the story of Jerry Sandusky broke to the press, the University board believed the investigation currently underway at their university was solely concerning Jerry Sandusky, but unbeknownst to them, the organizational breakdown of Penn State was involved in the investigation as well. The investigation analyzed documents and conversations from Penn State’s leaders that spanned from 1998 to 2011. What came to light was that Sandusky, a renowned alumni of 32 years, ex-Penn State football coach, and an active member in youth charity programs, had been sexually harassing minors on and off university property. In addition, at various points during this time frame, leaders in various positions within Penn State’s organization knew of these accounts and did nothing about it. This report aims to focus on how the organizational culture as well as the breakdown in leadership responsibilities, aided in the allowance of such acts to continue...
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...Countermeasures of attacking and breaching medical records are various, but the most essential are anonymization, access control mechanism, encryption and cryptography, training and education, set up policies, and disciplinary actions. Healthcare providers must develop anonymization techniques to increase the privacy of patients’ records and insure their convenience and safety. Anonymization can implement by using different methods, for instance, encrypt patient’s identifiers by using a specific algorithm that converts the regular plaintext into and unreadable cipher text, or by removing the patient’s identifier and critical information from his record. Thus, when the healthcare provider transfers patient’s records inside the hospital or among external entities the patient’s identity remain...
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...will arise should you submit plagiarised work. Corporate governance pertains to the implementation of a set of established policies in which influence the way an organisation is managed and the style in which it operates. For policies to be efficiently and effectively implemented the execution of corporate governance is not only vital, but also essential in satisfying an organisations customers, employees, management and the interrelations amongst stakeholders involved (Bhattacharya, 2000). The late 1980s and early 1990s witnessed major upheaval in regards to continuous instances of corporate failure of several prominent UK organisations including Polly Peck, BCCI and Maxwell Communications. These corporate collapses and financial scandals were the driving force behind the development of initiatives in attempt to reform weak governance systems. Governance practitioners and regulators displayed concern towards the effectiveness of the board of directors and other governance mechanisms following...
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...Food Policy 36 (2011) 412–420 Contents lists available at ScienceDirect Food Policy journal homepage: www.elsevier.com/locate/foodpol The China melamine milk scandal and its implications for food safety regulation Xiaofang Pei a, Annuradha Tandon b, Anton Alldrick c, Liana Giorgi b,⇑, Wei Huang a, Ruijia Yang a a West China School of Public Health, Sichua University, Chengdu, China The Interdisciplinary Centre for Comparative Research in the Social Sciences, Austria c Camden BRI Food and Drink Research and Services, United Kingdom b a r t i c l e i n f o a b s t r a c t This article examines the development of the Chinese dairy sector since 2000 and investigates how this has affected food safety. The ongoing problems caused by melamine contamination are linked to the rapid and unregulated development of this sector. Currently, China is faced with demands – both from home and abroad – to improve its food safety record. This will necessitate it upgrades its regulatory framework to meet the standards of Codex Alimentarius and the EU. A serious restructuring of the dairy sector as well as of the public food safety control agencies is called for. The costs and benefits to be accrued by these reforms are the subject of this article. Ó 2011 Elsevier Ltd. All rights reserved. Article history: Received 16 February 2010 Received in revised form 20 January 2011 Accepted 3 March 2011 Available online 8 April 2011 Keywords: Safety Melamine Dairy China EU Regulations ...
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